As Microsoft prepares to conclude most support for Windows 10 in October, businesses that have postponed their upgrades are now confronted with a pressing dilemma. The transition to the latest version may necessitate the replacement of aging computer systems. Originally launched in 2015, Windows 10 will reach its end-of-support date on October 14, 2025, as confirmed by Microsoft in 2021. This cessation of support entails the discontinuation of software updates, technical assistance, and crucial security patches. However, in July, Microsoft introduced an Extended Security Updates program, allowing select Windows 10 users to extend their security updates for an additional year, albeit at a cost of per device. This subscription service does not encompass new features or general tech support, and the price doubles for enterprise users in subsequent years.
Challenges for CPA Firms
Many CPA firms have been gradually upgrading their systems, yet a December 2023 report from the CPA Firm Management Association revealed that Windows 10 remains the dominant operating system, with 47% of accountants relying on it for the majority of their work. Responses from major accounting software vendors indicated that a substantial number of their users are still on Windows 10, with figures ranging from less than a quarter to just over half.
John Higgins, CEO of Higgins Advisory, noted that the impact of this transition varies significantly among firms. Those equipped with dedicated IT professionals have been proactive in addressing the impending support termination, while others, particularly smaller firms without such resources, may be unaware of the looming deadline. “It obviously depends on the firm,” Higgins remarked. “Those with substantial IT groups have been ahead of the game, while many others may not even realize there is an issue.”
Complicating matters further, the latest Windows 11 has specific hardware requirements that older devices may not satisfy. Randy Johnston, co-founder of K2, pointed out that many firms have not adhered to the recommended hardware replacement cycle of every three years. Consequently, numerous practices are still operating on machines that are now five years old, which is considered outdated in the fast-paced world of technology. “A lot of firms bought machines at the early part of the pandemic and have been riding with them,” he explained. “My best bet is that maybe one-third of machines in the profession need to be replaced.”
Additionally, firms that have relied on hosting services may have become complacent regarding their hardware upgrades, as centralized hosting can obscure the need for regular device cycling. “If they were using a hosting service, they may not have thought about their edge devices much,” Johnston noted. “There wasn’t much promotion from hosting companies to encourage hardware replacements.”
Even if firms recognize the need for an upgrade, they may underestimate its importance, especially if their current Windows version appears to function adequately. Donny Shimamoto from IntrapriseTechKnowlogies observed that previous upgrades had more significant impacts, leading firms to question the necessity of transitioning to Windows 11. “With Windows 7, the security additions were needed and made sense, which is why you saw quick adoption. I’m not hearing the same urgency with 11,” he stated.
Cost Implications and Hardware Requirements
Firms that have delayed upgrades may soon face rising hardware costs as they cycle out outdated machines. Brian Tankersley from K2 Enterprises highlighted the challenges posed by disrupted supply chains and fluctuating tariffs, which can complicate the purchasing process. “It’s not as bad as it was during the pandemic, but the tariff situation means you may not like what it costs,” he said.
Roman Kepczyk from Rightworks emphasized the importance of specific hardware components for Windows 11, such as a neural processing unit (NPU) designed to support advanced artificial intelligence operations. While not mandatory, devices lacking an NPU may struggle with AI functionalities, which are increasingly relevant in the accounting sector. Furthermore, Windows 11 requires a trusted platform module (TPM), a chip essential for enhancing security. “Even if you have a good Windows 10 computer, if it doesn’t have the proper hardware, it’s not going to take the upgrade,” Higgins warned.
Tankersley cautioned that while it might be technically possible to run Windows 11 on older hardware, doing so could expose firms to significant risks. “You can go around the requirements and still install Windows 11, but if something goes wrong, you’re on your own. And being on your own is not a place CPAs want to be,” he said. The security risks associated with outdated devices are particularly concerning, as cybercriminals quickly exploit vulnerabilities in older systems.
The Windows 12 Gamble
Beyond the immediate hardware concerns, firms must also consider the potential arrival of Windows 12. With Windows 11 already four years old, firms face the dilemma of whether to upgrade now or wait for the next iteration. If a firm opts to delay, it may choose to pay the -per-device fee for continued security updates. However, if Windows 12 is released shortly thereafter, the decision to wait may prove cost-effective. Conversely, if Windows 12 does not materialize by 2026 and the firm has not upgraded, the fees for extended service will escalate to 2 per device, then to 4, prompting a realization that investing in new hardware may have been the more prudent choice.
Johnston likened this situation to a gamble, emphasizing the unpredictability of waiting for the next version. “It’s a complete wild card coming at you. I would much rather have a few cards on the table to make informed decisions,” he said. Kepczyk noted that many firms are currently in a wait-and-see mode, as the performance improvements from Windows 11 may not justify the immediate upgrade. “They just say, ‘You know what, I’m going to stick with Windows 10 for another year and wait to see if Windows 12 is significant,” he explained.
Shimamoto echoed this sentiment, suggesting that the decision to upgrade may hinge on the adoption of AI technologies. “If we see a lot of AI adoption, Windows 12 may not last a decade, but that’s typically enough time for firms to cycle out hardware naturally,” he remarked.
Making the Move
For firms that anticipated this upgrade, the transition has been relatively smooth. Hrishikesh Pippadipally from Wiss shared that his firm completed their upgrade in 2022 without significant issues. They followed a structured process, validating compatibility with core vendors before piloting the upgrade with a small group, gradually rolling it out to the rest of the firm. “We never do a full-blown upgrade at once; we gather feedback and adjust as needed,” he explained.
Shayna Chapman from Shaynaco LLC also reported a seamless upgrade experience, as her small, cloud-based firm managed the transition with minimal complications. To ensure a smooth process, they enlisted a technology consultant to oversee the upgrade. “We just hit the button and went,” she said, highlighting the ease of the transition.
Tankersley advised that firms uncertain about the upgrade should consider seeking external assistance. “Just like we audit financial statements, it’s always good to have someone looking over your shoulder when it’s mission-critical,” he suggested. As the deadline for Windows 10 support approaches, firms must weigh their options carefully and consider the long-term implications of their decisions.
